ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

How to invest in Real Estate investment Trust (REIT)s?

Updated on August 5, 2017

What is Real Estate investment Trust (REIT)?

Real Estate investment Trust (REIT) is an avenue for investment similar to Mutual funds and stocks. REITs offer returns from Realty projects. They are ideal for first-time and small investors and those who wish to diversify their investment portfolio in new innovative products. Investing in REITs is equivalent to holding assets in Real estate. Through REITs, one can hold real estate asset for as low as Rs 2 lakh. REITs are also a safe investment option for risk-averse investors. DLF, the country’s largest company in the realty sector has already planned to raise Rs 6000crore through REITs. A recent report has estimated that Indian commercial real estate sector offers investment opportunities in REITs worth $43 billion to $54 billion across top cities in the country.

How REITs work? Through REITs, funds are collected from investors, pooled together and then invested in realty projects. REIT unit owners get returns upon Value appreciation of the projects or rental income from the projects. REITs work almost similar to Mutual funds, wherein funds from investors are invested indirectly in stock market and returns from stocks are reaped by investors. REITs are expected to offer around 8% returns to holders at present but this could go up as infrastructure growth picks up. Well managed REITs can offer higher dividends compared to other instruments like Stocks. India is a fast developing economy and hence REITs are sure to be a success. SEBI has already allowed listing of REITs and their units on stock exchanges.

REITs in India are mostly of the Hybrid type, meaning that they invest in both properties as well as mortgages. Apart from this, REITs also invest in office buildings, Malls, Hotels etc. There are location-specific and segment-specific investments in REITs. Government has exempted REITs of minimum alternative Tax (MAT).Recently the government also scrapped the applicability of Dividend Distribution Tax (DDT) on REITs.

How to buy REIT units? Individuals can invest in REITs by purchasing units on an open exchange. This can be done online through a demat account or directly through the REIT. Listing of REITs is expected to commence in 2016

List of Real Estate investment Trust (REITs) in India: Many companies have expressed interest to start REITs in India. Notable among them are DLF, Xander, Embassy Group, Red Fort Capital etc. With chances of government allowing foreign investment in future, REITs could pick up in a great way in India


    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)